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Report: CRE Investment Volume Declines in Q4 2022
Commercial real estate investment volume hit record levels in 2021. The story was different by the end of 2022, however. According to CBRE’s U.S. Capital Markets Report, the sector’s investment volume for 2022 was $671 million, a 17% drop. Meanwhile, Q4 2022 investment volume stood at $128 billion, a 63% decrease from the year before. Despite this, the full-year volume represented the second highest annual amount on record.
Multifamily remained in the top investment spot, generating $48 billion in revenue, representing a 70% year-over-year decrease. Industrial was the second most-preferred sector at $32 billion, which was down by 58% from the year before.
From a geographical perspective, Los Angeles was the top market for total investment ($53 billion). This was followed by New York ($51 billion) and Dallas ($39 billion). However, investment slowed in these and other top-20 metros. The only market that demonstrated year-over-year investment growth was Nashville, the report said.
CBRE analysts reported that private buyers made up the largest share of investors during Q4 2022 at 61%, spending a total of $78 billion. Institutional buyers spent $21.3 billion during the quarter, while REITs/public companies shelled out $13.6 billion.
Economic uncertainty impacted cross-border investment volume, which dropped by 81% year over year to $6.2 billion. Canada was the top country for U.S. inbound cross-border investment in 2022 at $11.8 billion. Germany came in second place at $1.9 billion, followed by Spain ($1.8 billion).
- ◦Sale/Acquisition
